LBMA Trading Volume Data Confirms The Paper Gold Casino in London
The comments below are an edited and abridged synopsis of an article by Ronan Manly
The London Bullion Market Association (LBMA) recently published trading volume data covering the London and Zurich over-the-counter (OTC) gold and silver markets. According to this data, the equivalent of 939 tonnes of gold (30.2 million ounces, or US$5.2 billion) and the equivalent of 11,174 tonnes of silver(359.2 million ounces, or US$36.9 billion) is traded each day by LBMA member firms for settlement in the London and Zurich markets.
Given that 3,200 tonnes of gold are mined globally per year, LBMA members are trading more gold every 3.5 trading days than is mined in an entire year. Likewise, given that 27,000 tonnes of silver are mined globally per year, LBMA members are trading more silver every 2.5 trading days than is mined in an entire year. This prevents proper price discovery for both gold and silver.
Up for discussion: Trade reporting, the daily trade volume date, and trading volumes (which are now mysteriously 82% lower than in 2011).
